By Marisa Wong
Morgantown, W.Va., June 21 – Royal Bank of Canada priced $2.3 million of autocallable contingent coupon barrier notes due Dec. 21, 2016 linked to the worse performing of two stocks, Celgene Corp. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon of 11.57% per year if each stock closes at or above its coupon barrier level, 75% of its initial price, on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial price on any quarterly observation date.
If the notes are not called and each stock finishes at or above its 75% trigger level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of shares of the worse performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
RBC Capital Markets, LLC is the agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying stocks: | Celgene Corp. (Symbol: CELG), Microsoft Corp. (Symbol: MSFT)
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| Amount: | $2.3 million
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| Maturity: | Dec. 21, 2016
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| Coupon: | 11.57% per year, payable quarterly if each stock closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above its trigger level, par plus the final contingent coupon; otherwise, a number of shares of the worse performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares
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| Call: | Automatically at par if each stock closes at or above initial price on any quarterly observation date
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| Initial prices: | $100.23 for Celgene, $50.39 for Microsoft
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| Trigger/coupon barrier: | $75.17 for Celgene and $37.79 for Microsoft; 75% of initial prices
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| Pricing date: | June 16
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| Settlement date: | June 21
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| Agent: | RBC Capital Markets LLC
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| Fees: | 1.75%
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| Cusip: | 78013GBC8
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